Investor Glossary-negotiable certificate of depositInvestor Glossary-negotiable certificate of depositInvestor Glossary-negotiable certificate of depositInvestor Glossary-negotiable certificate of depositInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Negotiable Certificate Of Deposit

The HTML to link to this page
 

A negotiable certificate of deposit is a large denomination certificate of deposit (CD), a savings instrument issued by a bank. Usually bought by institutional investors, a negotiable certificate of deposit is normally issued in amounts ranging from $100,000 to $1 million or more. Investors in a negotiable certificate of deposit want a short term, discounted investment which provides a fixed interest rate return over an agreed period. The negotiable certificate of deposit often comes in bearer form and can trade in the highly liquid secondary market. A negotiable certificate of deposit trades at a discount to the face value, which is repaid on maturity. However, a negotiable certificate of deposit cannot be cashed-in before it matures. The issuing bank guarantees payment of the negotiable certificate of deposit. Investors consider a negotiable certificate of deposit a low-risk, low-interest security. Another term for a negotiable certificate of deposit is a Jumbo CD.



Rate this negotiable certificate of deposit definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, quality assurance, 144a, VIX, limit order, inflation, labor relations, reverse mortgage, in escrow, diluted share, ex-dividend, wholly-owned subsidiary, APR, deferred tax, FTSE, 1031 exchange, ex-dividend date, per diem, open position, debt service coverage, retained earnings, margin rate, Zero Cost Collar, balance sheet, liquidity ratio, implied volatility, required rate of return, irrevocable trust, 401a, dividends payable, option premium, stock split, real GDP, Key Rate Duration, phantom income, FICO score, annual return, stock market close, 1035 exchange, cancelled check, command economy, EBITDA, deferred revenue, covered put, class C shares, current ratio, LIBOR, risk management, minority interest


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use